Alphabet Inc invests $5 billion in a project that generates annual profits of $800 million The project's useful life is 10 years, and there is no salvage value Required Calculate the average annual ROI for Alphabet Inc Determine the payback period for the investment Analyze the profitability index of the investment Calculate the net present value (NPV) assuming a discount rate of 8 Determine whether Alphabet Inc should proceed with the investment based on the NPV analysis

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Question: Alphabet Inc. invests $5 billion in a project that generates annual profits of $800 million. The project's useful life is 10 years, and there is

Alphabet Inc. invests $5 billion in a project that generates annual profits of $800 million. The project's useful life is 10 years, and there is no salvage value.

Required:

Calculate the average annual ROI for Alphabet Inc.
Determine the payback period for the investment.
Analyze the profitability index of the investment.
Calculate the net present value (NPV) assuming a discount rate of 8%.
Determine whether Alphabet Inc. should proceed with the investment based on the NPV analysis.

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